To contribute to the initial phase of Antalya Airport expansion through the provision of a capex bridging loan.
The Project comprises three components:
The Project will increase the annual capacity of the Antalya Airport (the “Airport”) from 40 million passengers to 80 million passengers in three phases.
At the end of 2021, the Sponsors won the tender and signed the new lease agreement with the Turkish State Airport Authority to develop and operate the Airport. The Sponsors have operated the Airport under the current lease agreement since 2007.
Pursuant to the lease agreement, the Sponsors are required to make an upfront payment amounting to 25% of the total rental fee. As such, they have entered into a 2-year loan facility with a syndicate of commercial banks. The Sponsors are now arranging similar loan facilities to finance the capital expenditure for the expansion works from commercial banks and multilateral development banks. The short-term loan facilities are expected to be refinanced in March 2024 via a long-term project financing loan.
Environmental and Social Policy, Standards, and Categorization. The Project will be co-financed with EBRD. To ensure a harmonized approach to addressing environmental and social (ES) aspects of the Project, and as permitted by AIIB’s Environmental and Social Policy (AIIB’s ESP), EBRD’s ESP and relevant Performance Requirements (PRs) will apply to this Project in lieu of AIIB’s ESP. AIIB has reviewed EBRD's ESP and PRs and is satisfied that: (i) they are consistent with AIIB's Articles of Agreement and materially consistent with the provisions of AIIB's ESP and the relevant ES Standards (ESSs); and (ii) the monitoring procedures that are in place are appropriate for the Project. EBRD has categorized the ES risks of the Project as Category A (which is equivalent to Category A if AIIB’s ESP were applicable) since the ES risks are likely to have significant ES impacts and these impacts may affect an area larger than the sites or facilities subject to physical works.
ES Instruments. An Environmental and Social Impact Assessment (ESIA) was prepared to address the anticipated ES risks and impacts in the Project components and associated facilities. The ESIA also includes a Cumulative Impacts Assessment (CIA), Noise and Air Pollution Assessments, a Stakeholder Engagement Plan (SEP), and a Corrective Action Plan (CAP) prepared based on a land audit undertaken to assess the resettlement impacts so far and identify measures to address any gaps with EBRD’s PR5 (Land Acquisition, Involuntary Resettlement and Economic Displacement). Environmental and Social Action Plan (ESAP) and Supplementary Livelihoods Restoration Plan will guide the Project’s mitigation measures in accordance with requirements of EBRD’s ESP and PRs.
Environmental Aspects. For the construction phase, the Project will have conventional construction-related risks and impacts manifested through dust emissions, water contamination, noise, removal of construction debris, etc. For the operational phase, the major environmental impacts of air transport are cumulative noise impact, air pollution, solid waste (including hazard waste), and wastewater. All these impacts will be managed and mitigated through the implementation of the respective Environmental and Social Management Plan (ESMP) or ESAP.
Climate Change Risks and Opportunities. The Airport is certified Level 3+ by the Airport Carbon Accreditation System (Airports Council International) and aims to achieve its net zero carbon policy by 2050. The new terminal will be built based on a sustainable building design for this expansion, in line with international good practice - LEED Gold standards. A climate change risk assessment was prepared, which recommended several mitigations and/or adaptation measures to reduce the climate change risk in line with Paris Alignment objectives.
Social Aspects. The Project’s land acquisition started in 2010 with valuation of affected assets according to National Law on Expropriation 2942. 105 parcels were expropriated. All expropriation was handled according to national law. A total of 604 Project Affected Persons (PAPs) were impacted by the Project’s land acquisition. Title deed transfers for all private parcels have been completed in 2017. The Project led to a physical displacement of 278 PAPs and economic displacement of 173 PAPs. A CAP was prepared to address potential legacy impacts and future related risks in line with the requirements of EBRD’s PR5.
Stakeholder Engagement, Consultation, and Information Disclosure and Monitoring A standalone SEP is prepared tailored according to gender considerations. Gender equality and additional meaningful consultation will be considered in the implementation of the SEP, which has a participatory and inclusive approach. The draft ESIA package, including the ESAP, SEP, Non-Technical Summary (NTS), CAP and Supplementary Livelihoods Restoration Plan in English will be disclosed for public consultation by November 2022. The NTS and relevant summaries of ES documents in Turkish language will be uploaded online to the Borrower’s website and hardcopies will be made available in the Project areas. This documentation will also be disclosed on EBRD’s website, and AIIB’s website will include links to the disclosures on the Borrower’s website and EBRD’s website. The Borrower will be required to prepare and submit semi-annual ES monitoring reports for AIIB’s review. AIIB will join supervision missions conducted by EBRD once conditions allow.
Project Grievance Redress Mechanism. The Borrower has established Grievance Redress Mechanisms (GRM) at project-level for both employees of the Airport and the local communities or related stakeholders in accordance with EBRD’s PR10 (Information Disclosure and Stakeholder Engagement) requirements. The information of project-level GRM and EBRD’s Independent Project Accountability Mechanism (IPAM) in local language will be disclosed timely in an appropriate manner. The EPC Contractor will also establish its GRM, and the contacts will be disclosed in a timely and appropriate manner.
Emre Mutlu
Head of Project & Corporate Finance
Michael Reusch
Asset Director & Investment Manager
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